Supreme Court Orders Record Penalties Over Fraudulent Drug Procurement

In a landmark ruling, the Supreme Court of Sri Lanka has mandated that former Health Minister Keheliya Rambukwella and four high-ranking health officials pay a combined Rs. 275 million to the state. The verdict follows a finding that their involvement in a contentious medical procurement deal constituted a gross violation of the public’s Fundamental Rights.

The case, initiated by Transparency International Sri Lanka (TISL), centered on the unlawful purchase of Human Immunoglobulin (Human-IG) and various other pharmaceuticals. The petitioners argued that the bypassed competitive bidding process was illegal and compromised public safety.

Constitutional Violations and Penalties

A three-member judicial bench, led by Chief Justice Preethi Padman Surasena alongside Justices Kumudini Wickremasinghe and Janak De Silva, determined that the officials breached Article 12(1) of the Constitution, which guarantees equal protection under the law.

The court-ordered compensation is distributed as follows:

• Keheliya Rambukwella (Former Minister): Rs. 75 million
• S.J.S. Chandraguptha (Former Health Secretary): Rs. 50 million
• S.D. Jayaratne (Former NMRA Chairman): Rs. 50 million
• Vijith Gunasekara (Former NMRA CEO): Rs. 50 million
• Arambegedera Thusitha Sudharshana (Former Director, Medical Supplies Division): Rs. 50 million

Judicial Findings

The apex court scathingly characterized the decision to grant a “Waiver of Registration” for the drugs as “wrongful, arbitrary, and capricious.” By securing these medicines through unsolicited direct contracts rather than transparent tenders, the court declared the entire transaction null and void.

The judgment further noted that the respondents failed to uphold established procurement protocols. At its most severe, the bench observed that their conduct appeared to be a deliberate attempt to defraud the State and deprive the citizenry of essential medical resources.

Further Legal Action

Beyond the financial penalties, the Supreme Court has instructed the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to launch formal proceedings under the Anti-Corruption Act. This directive aims to ensure criminal accountability for the systemic failures that jeopardized the national health sector.